Ind As 116 teases

Lesson Lessee
a
1 Finance lease If thant team lease Exemption on
haemeccequise the teased Asset lease of low value asset exemption
not taken

NotInvestment in the lease Dr Rou asset xx

To Asset To lease liability

2 Operating lease 4 No concept of Finance operating

Leontine to recognise the asset lease in case of lessee

sheep 7100 45 cool morning MY.my

After Finance lease after lease
Demented
Leese Receivable P.v 7951 Px of lease list 951

Rightatyy
Blsheet y Beshear

sheep cool Asset 7 1001 RouAsset 951

511 Denecognised A
pie ceaseside 951
net.int in the Accounting as per
a antExp every
tessellation 951 yean Ira as 16

f paymentsevery costmodel

If operating lease yea Reval model

No initial accounting Entry
 Example LESSEE
Jagat ctdflessee enters into 59ns Property lease Arrangement with ICA
Ud Lease payable every year E 50000
Implicit rate of interest 104
loool
suggest Accounting treatment stg

soft on It and and I I

gggygd.fi
idd 50000 50000 50000 50000 50000
5000041 10 mt m
Discount ble 109 mt mt
µ mg
Pill of lease liability 189540 Rou Asset 189570
Boo Asset Profcease lief saggy To Lease Liability 189540

Alternatively Caspenical Not Recommended

Years teargoffmeats
D v factor lot presentudve
I 909 45450
2 I 50000
Installment 826 41300
3 A 50000 Intend 757 37550
50000 these the 34150
4 I 1683
5 50000
not 31050
warden 621
189500
BalancesheetLieske
PkCDep7 7 3790015times 189500
18950 158951 12441
plecintened
7 8672 4604
60500
Boo Asset 189500
Lease liability 189500 f Dep 115mg 18950078k 379007
Finance cost lot Pll 18950 5 Dep 2ndyr Pk 379007
Installment Bank 500007 5 Dept 3rdyr Pll 379007
379007
Lease liablistymEnd 158450 your hmm Pll
 Finance cost 101 Pll 158451 Dept sharple 37907
That Bank 50000 Nil
124295
Finance cost 107 Pll 124290 Bank
Theft Bank 500007 50000 50000
86724
Finance cost cot Mu 86720
a Theft Banu 500007
95396
4 Finance cost 107 PK 45394601
Instt Burn 500007
NIL

Itaiggyaspenical N
not
Payment
years Initial scathe Interest Exp ClosingBalance
I 189500 t 18950 50000 158450
2 158450 15845 1500007 124295
3 129295 1244 50000 86724
4 86724 8672 50000 45396
5 45396 45394604 50000
crowdoff

Rounset
Initial value Depreciation closing Balance
I 189500 37900 151600
2 151600 37900 113700
3 113700 37900 75800
4 75800 37900 37900
5 37900 37900
 Statement of Pll
11 2nd and I 5 Told
Deprivation 37900 37900 37900 31900 37900 189500
InterestExpenses 18950 8672 4604 60500

56850 53745 50329 4657242504 250000

Total Expenses

Lease Expenses 50000 50000 50000 5000050000 250000

Journal Entries lessee

Commencement Date
Rou Asset
iggsoo
To lease liability
istymand

Dept Pll 37900 Rou Asset

D
To Rou Asset 37900

Interest Expenses 18950

to lease liability 18950 Lead him
lease liability go
49 ant Pant
TO Bank 50000

2nd 3rd 4th 5h

Dept Pll 37900
To Rou Asset 37900

Interest Expenses 15845112429 867214604

To lease liability 15845 12429 867214604
lease liability 50000

TO Bank 50000
If Partin Jaggi lessee cagers into f gears lease arrangement
on Building wily Payal ad
Lease tent Payable every year 125000
Discount note eat
Prepare RS P e Journal Entry
 Teiscontnett

Yeahs lease payments P.u 5t.P.n.of lease Payments

041min97 100000 1 100000
142dyrreggy 102000 1952 97102
2 104040 907 94364
I 106121 864 91689
4 108243 823 89084
5 110408 784 86560
6 112616 746 84012
7 114869 711 81672
8 117166 677 7934
9410mg Begg 119509 645 77083
10 880887
Lean line initially measured of E 880887
Rou Asset Dr 880887
To lease liability 880887

B Sheet

Leaselincomy 880887 Rouysset 880887

e Payments
of149 Begg 1000007

elDepteveeryyeen8t088ben1
5t.ot stoned 39014cm remedy H9nf
leadliabpstarad 819971 Rounsufflohyred Nt
ed
 Payment afraid Beef 102000

AW stofadured 35896cal
752827
Pagnell gray Reg 109090
Mr st

headline
of congrregg wig

Blsheet

RouAsset 880887
Leaseliabatothyu 880887 adept liter 1880887

e Payments etistyrtegg
4000007 peep radar 88088
9ntlxPot15tqvGnd 5f.z 39044 e Dept Myr 88088
 leese tick of 1914rad 819931 And soon comarca nil

Payments of LadyBegg 1020007

54.41880887 100000
479ntEyp.of2t9yrErd 5f.I 35896 54of 1819931 102000
lose liab d 2449End 753827
Payments atty Begg 1040401 54.41753827 104040
4 At Eypandynard 51 32489
lakh'd at Mdgeard 682276
And so on till lohar
heese liabatlothynBeggining NIL

Alternatively
Leese liabilities payments
years initial Vakela interests 1h11PM Mitiabinities
I 880887 1000007 39044 819931
2 819931 11020007 35896 753827
3 753827 104040 32489 682276
4 682276 106121 28808 604963
5 604963 1082437 24836 521556
contd self
6
7
8

9
Hessle Hesson

Partofrooted

10000

BHIM asset 850000

t 10000
50000
lease liability 850000
T 1000
811000

Can 100007 56000

490007
39000

Roo Asset A 811000 Too Asset 811000

Barn DV 50000 thank 39000
To lose lice 850000 To lose lid 85000
TO Bark 11000

BI
por my 811000
Lease tide 850000
of
a
oven useful life
Mr
Damp
E
Exam raiated Soen

Predetermined
A
Pense se decide hojana Ii allll Kese are his purpose we wye use
hoga

which both lesson lessee cannot charge

H
Here Both Castomen lessee supplies lesson do not have night
to direct the use

Then Kesh Man ardega flow has right to direct me use

If customer has night to operate the asset

OR y
16 Customer has designed the asset
I
then it is Presumed that customer has tiger to direct
the use
 Leak team
W 5,1 est 29 it at 57 61
50000 50000 50000 50000 50000 50000

E9
Non Cancellable Period 59ns
Extension option gyms Reasonable certainty that lessee
will exercise say option
I lease team 5 13 84

E9
Non Cancellable Period 54ns
Termination option after 3 years
He
If Lessee reasonably certain to exercise termination option they
lease team 54ns
zyoy
If lessee reasonably certain not to exercise termination option they
lead team 5 yeans
 Lease team Reassessment
of lease team

99 Noncancellable period 5yeans

fall payment 50000 par
Discount able lot
Renewal Period
of another years at the option oflessee

Ok I 21 me at s I I 81
50000 50000 50000 50000 50000 50000 5800050000
commencement
At
date we
Measonabycentrin
Td
nottoexercise
extensionoption

Rou 189540
Present late Aut
Allah
ofpapers
TO lease liability 189540

89540
Bleteet
Rounset 189540
Leaseriot 189540 C Dep 29476758167
art lot 18954 113729

a Payment 500007

158494
15899
Mf lot
50000
a Payment

tear tideCody 124793

Atardward too meet 113724

Uhh Gob 124343
suppose
af andyn God lessee incurred significant cost on leasehold
improvementwhich now indicates that lessee is reasonably certain
to exercise renewal option
f Total 54ns t 34ns
leak team Gym
Remaining ceaseteam Candy and byres

Idyney say than Smg GI K

50000 50000 50000 50000 Soooo 50000
q
REASSESSMENT

MYÉÉm ng
217762 S

Lease tide changed from 129793 to 217763

ie cease hide P 93420 1 mmesponding increase in RouAsset

Toward Roo Maser 93420

To Leave liability 97420

Mstectlandrand

Lease Lief 124397 Rou Meet 113729

93420 A 97420
217767 207194 life byMY
µ
f ant lot everyyear Dept over a periodofGuns
a payment every yeen ie Dep 34529 eachYear
 OPTION
REASSESSMENT OF PURCHASE

Noncancellable period 5years

fall payment 50000 par
Discount able lot
Purchase option
of 5ham and of E 90000

commencement date I Lessee reasonably certain not to exercise purchase

option

at 1st 29 71 I I
50000

pigging 1,850000 q
Mansur
Atardarad
4 Lease tick 124343
Rou Meet 119724

lessee reasonably certain to exercise purchase

ads 31 4 I
50000
of
50000 50000

191961 90000

a Toy
I Lease link increases by 676189191961 1243437

Towing
Rou Asset 6718
To cease lief 67618
 RISheatfardyrad
Rou
hear tide 124347 grey 113729
67618 A 67618
191961 181392
At cot shaven useful cite
Punched
Payment good offset because
At lot optionwillbe exercised

Damson
dot lot
Roynysaooo

Panel goooo

EG
104M
Monhollen'd Extension period

commune I
Dot Extensionoptioneyenated

I
include Another

54
 Lease Payments
E9 Lease team 29ns 4 Extension option 29ns
Fixed lease Payments 50000
Reasonably certain to exercise extension option
Purchase option
of 5thyr and Reasonably certain 35000

111 2nd BY I I
50000 50000 50000 50000 50000
Commencement
25000
Ade

E9
Leaseteam 5 you 50000

E 85000 CshynEnd
Minimum Residual Value Guaranteed
by lessee
Expected Residue value
of shy and 70000
Lessee not reasonably certain to exercise purchase option

or th se nd I I
50000 50000 50000 50000 50000
15000
He
Guaranteed
resided
value
AffidyaEnd Cnet
GRY 85000
ERI 60000
25000
 I I
É 50000 50000 50000
15000
25000

Ef In substance Figed lease Payments

11111208
89 Tarek then lease for 54ns
on
dowridenation 210 um oh 275000 pin whichever is greater
Hr is expected that 10000 am driven every year

oh it set it at E
75000 75000 75000 75000 75000
series
Te
Bleed
heave lid 284309 ROU Asher 284309
4 At lot 28430 Dlc Dept
Payment 75000
stared 237779

star Edt Actual Panet 12000km X Io 1200007

75000 95000
Expenses
Fixed
leasepaint in star
Istyn

Ant Egp 20h30

To lead aid gyzo
 Dare hit 75000
ten Epp Plo 45000
TO Bark 120000

Termination Penalties
Elf
Leave team syns
Lesseecan terminate team often 3 years Penalty 100007
Lessee y reasonably certain to terminate often 3 you

Fixed Payments 50000

I see it at 5
50000 50000 50000 50000 50000
10000

CRUX
of lease payments

v it includes
D Fixed lease Payments
In substance Fixed lease Payments
Incentive
Exercise price of purchase option if reasonablecertainty
Termination Penalties Reasonable certainty
Guaranteed Residual Value
Variable lease payments pendonmance Reedy
Only variable lease payments that depends on Indy
on note leg CPI LIBOR
Variable lead Payments depend on index 49.9 consumer Price index

oh 1h and nd I I
55000 52500 55125 57881 60775

if atandy CDIchanges to64

3rd I I
55650 58989 62528
Variable lease Payment depending on U Bon furor 277

or at sea net I I
50000 52020
51000 53060 5h14

Yamiable lease payment depending on Penbonmonee

say lease payment based on loud sales etc

I
Not included in Lease payments
 Id est and 3rd
Dv 20000 30000 50000
77370 1893 X797 X 712

Discountnote 127

Towing
commencement
Rou Alf 77370
Dde
To cease aid 77370

My Inteep 9284
To Derelict 9h89
977370 12 7
Lease live 20000

To rank 20000
25790
DURCH
To Rou Asset 25790

flex tide
7h Initial lobe antenest Payment closing
I 77370 9284 200001 66654

2 6665h 7998 70000 94652

3 44652 5398 goooo

Daumier opened out Clotilde

I 77370 25710 575801
2 51580 25790 25790
I 25790 25790
 Statement
of PKCartreet
1st 21 I
Intenest Exp 9284 798 5248
Dept 25790 25790 28790

Bleed
or at ne at
Rou Ant 77370 51580 25790
Leontine 77370 66654 44652

Pretty

appeared yard Pr P.p.offlese payment

500000 1
Mr 4150001515000 2000001 917
2nd 570450 841
M 546267 771
9M 562754 707
it 579627 699

6 597026 595
H 614937 546
oh 673385 500
9919ha 652286 459

I
 3000000 PurchasePrice 921
for
50100,383
He
pounded off
25000001
Commencement aai
Rouault 5000000
To Lose Lick 5000000

Miss
Myrrha Lege lick 500000

To Rank 500000

Harald Menen EEP

Tf Leasehiof goooo
94500000 9.0477

Depot 125000
Rouged 125000

500009.7

Lease him
9oh't d robe
Befrof9eonIrifidXol yoooooo19mhts9ntered
5000007 406800 9906800
1
I 4906800 715000 415099 5006899
5006899 530450 404677 4881120
y
I 4881120 546364 391862 4726618
5 4726618 562754 376413 4540277
6 4540277 579637 358042 4318682
 F
r
9
10

pound
year off
I soooooo 9 00 Tsavo
renta Beginning

Beginning pin h 16667

NetBeans
Other items
Non Cancellable Period Renewal Period

11I
team
lease
years

311202
3111401
zippy
loyal of
 is est 29 nd I I
100000 10000010
0004.00000100000
Pulsation
954595

Roomier 454595

To lose liability 454595

herself
initialvalue Payment Infenest
dog cake
1000007
454595114.01 17730 372725
272325111 02 100000 13616 285941
285941111.037 1000007 9297 195278
195278 Anton

RouMI
Initial Og I
45459511ha 90919 367676
36367691.027 90919 272757
272757111.07 90919 181838
181828111.04

Remeangematadi
CPI Before 120
CPI now 125
I Increase in CPI f 4120 100 4.1671

levied
 that
Remeannemate
Ignacio um
100000 100000 1100000
To 110000

Gathering Skyrim 6Myrreg yapper Styria

4 71
100000
100000
44917 499ft
taint that't
104167 104167 114583 119583 114583
A
Pair 67
Fiat For
387215

491382

i Increase in Lead hid 296144 9991382 195278

Rou asset 296149

To cease tire 296144g

Revised Discompadi Original Bloat

H
Job fettle me control mere married

d I
1 Reassessment
of lease team D Ender on male

D u a Purchase Option 2 Resided value Guarantee

3 Modification 3 Variability resolved and in substance
Fixed Payment determined
 Discount adit

1 Interest rate implicit in the tall

fat is calculated from the
Point
of view of Lesson only

89 Jagat ad lesson encanto contract with suresh lessee to tease asset

C A of asset 100000 497the hooey oflesson
Fairy tale ofasset 120000
Lease Payments 50000 pen
year of 3 years
Residualvalue expected of the end of 3rdyr 75000 22000
2500025000
Residual valve guaranteed
by Lessee sarod
I unquamanteed peridot valve 10000 30000
Initial Direct cost incurred by lesson to enter info lease 4000 Comyn
Initial Direct coff incurred by lessee a n n 2000
to cat Interest mate Implicit in the lease From lesson pointofview

Rate of which
All of all lease Fimvalue Initial Direct
Mighty
payments cost
oflesson
leakRental tax
101
onyr 11 2nd Md
TainYou 120000 50000 50000 50000

4InitialDirect 25000 are

4000
costoflesson yoooo UGA
129000 85000

Tenrate a
Implicit ofInterest
 At 207
Fy125578
14.9 124000721251
At 219 123453

When value decreases

by 2125 Rate increases If M
Y I 1 2125

4 a u
by 1578 u a
2125 1578

2.749.9
Rate 209 t.my
20.799 Interest rate implicit intellase
A

cat
I 21 it
50000 50000 50000
25000
10000
124000

Merited
I 20749
85000

50000 1.2079 Mt Mt 85000112079

My MMC 124001
 ofview
Lessee point No ugly in caseoflessley
it and me
50000 50000 50000

118318 25000 CARD

padlich I Interestablein thehead

75000

20749

Rou Ault 118718 RoaMet 120718

To leak lid
2000
ToBanh
Rou Asset 2000
am sooo

For lesson g only interest order Implicit is used

For lessee g of Interest rate implicit is not determinable men

calculate achemental Burrowing note

Cal of Roo asset Galtee

leasePayments
lease liabilities fall of all
Initial dined cost
Directly attributable cost
4 Incentive fib already adjusted in tease link then ignore
Ax of dismantling
 Leases Denominated in Foreign Carineney Laffer Id as 217

Jaggi addressee Fe E entered into hear ammargement with Elon

musk lesson Frc 97
Lead team 3 years
Leak Payments 10000 every year
Diary rate 129 Gus environment

01 11 21 of
10000 10000 gooood

24018
129

Books
of Jaggi
COMYN 7 EH 507
Rou asset 1200900

to cease gag 1200900

924018 507

Blsheet
nonmonermith
moretti
heartlief 99240187 1200900 Rou Asset 1200900

Merest9240188 121 527 149872 Pll a Dep 111 noooo

e Payment 9100004 537 530000 Dep 12 400300

leaselink 820772 Dep 12 4003001

Exch loss Pfe 74928

at
895700
pstyard
24018 2882 410000 416900 53 E 895701
 Remeasurement
Purchaseoption termination
I change in Reasonable certainty Extension option
option Y Revised Discount mat

2 In substance Fixed paymentwhere variability is resolved originalDiscountnote

3 Change in Index on mate 9 original discountdate

a Change in Expected amountpayable in Residual value guaranteed original

Discountrate

MODIFICATION Revised Discount matey

charge in scope of a leak

Increasein scope addition Punchany Decrease in scope 9Partially Disposal

I
leaseteam extended from Gyeong 1 leaseteam medheed from Gyeong
to co years increase in team to 2 years Decrease in team

2 150099ft of ceased spree increased 2 150099ft of ceased spree decreased

to 2500sq Ft increase in size to 800sq Ft Decrease in size

change in consideration Leaserentals from E 100000 to E 95000 OR

d a a u from F 100000 to E 110000

does not result in CHANGE IN SCOPE

 of 1 21 and if I
15004ft 15009ft 15009.4 15009ft isoosq.tt

Roomy fantasy years toast.tt

googol
modification
offhand offounset sold
Decrease insane
goose.be god I s
I foolproof soogff sooseiff

Rouasset
I
footsfiff

It or I sit at a E E

leaseAnd
reduced

to a yeans
I
oflost
Rou asset

hybat
soldy

REMEASUREMENT OR lb name in headline Increase Roo

INCREASE IN SCOPE in modification on a decrease in a ie Decrease Rou

Notmelded to change in scope

Decrease in scope in modification 7 Disposal Gain loss

 Increase in scope

lol
Commencement
11 21 BY 1ohm
ade 100000
100000 100000 100000

726008 69

just Rouasset
To Lease Liability
8716008

Karelia
4th Taipingvalve antenest Payment eludes
1 736008 44160 100000 680168
2 680168 40810 100000 620978

3 620978 37259 100000 558237

9 558277 32497 100000 491731
5 491711 29504 100000 421235
6 421225 25274 100000 346509
7 346509
Heal 746355
thought Initial lobe den 649 Ureabedrohynend
goop 4416046601 294407
Modification at thy regaining
headline 346509
Rou asset 294404
Revised Discarnate Ft

ligrand I 81 I lol I 11 11 11
tooooo 100000 100000 100000 100000 100000 tooooo 100000

597130
7

I Lease hide increased 597130 250621

by 3465097

2507795
Rou asset Dr 250621 great
To hear lid 250621
 DECREASE IN SCOPE

0
01 11 21 39 10m
50000 50000 50000 50000

3680049 Of

Rou Asset 368004

To Leak Cide 368004

headcial
MN I 11 queerest Payment d
I 368004 22080 50000 340087

2 340084 20405 50000 310989

7 310989 18629 50000 279118
1 279118 16747 50000 245865
5 245865 14752 50000 210617
6 210617
1052

Round II pep a
768004 eryooresay 1 927920
25009
Secretin 1057095001 25009
92001
grew
to Roo
to Pll 19301
 toll
After modification
61 71 I 91 lot
50009in 50004m toboggan 50009in 50009.7
25009m 25009m 25009m 250059m 25209m
50000 soooo soooo soooo soooo
25000 25000 25000 25000 2500
theoretical
Lehretiab
105709
original 61

i Decrease in hide 1053097 105708

4210617
aggenaigutway Dealer inhide 210617 507 105308
Deemer in Asset 1840,02mg.mx25009in
92001

Journal Profit M Disposal 13307

Lease hick 105308
To Roo Asset 92007
To hain Cole 17307
Revised

Lease him 9210617 1057087 105709

Roo 4184002 910017
I 92001
REAL MODIFICATION
I 1 I E
30000 30000 30000 20000 30000

imy 57 Revised dishatnde

Pnc in head hick 9129881 1057097 24575

Rooney 29575
To terrain 24875
suppose in above 9 if Decrease in space from 50009m to 15009m

11 21 It if I
50009 50009 sarsen 50009 goose
15009in 150019 1500990
Hogg Hoog
15000 15000 15000 15000 15000
63185
69

I Decrease in Liat 4210617 671857 147432

On straightaway
Decrease in hide 4210617 7077 197432
Rou 128801
918907,0 7507
Gain 18671

Male only in case

of Decrease in Scope while calculating Gain loss
we can
straightway reduced cease line applying specified
proportion Percentage

Shortcut
day Begg
hear tiff 210617
too ashy 184002
tot Decrease in Scope 9 50009in to rag 7
Red in hare hid 9210617 50
7 105308
a a Poo Asaf 4184002 2 9001
party 17707
Gain My
 Modification

30000 30000 30000 30000 30000

nasty 57
A

Tnc 19889 1053087 24575

Rouault 24579
To hear Cia 24575
Motacase Jacemen inscope

I 29 31 it
100000 100000 ooooo 100000

7M 67
Rou asset 776008
headhid To head him 736008
4th paripinnate Anfenest Payment clouds
1 736008 44160 100000 680168
2 680168 40810 100000 620978

3 620978 37259 100000 558237

9 558277 32497 100000 491731
5 491711 29504 100000 421235
r
 6 421235

Rou Irl Dep 9

736008 368009 368004

Modification

61 E E I II
95000 95000 95000 9500 9500

389518 4 H

Decrease in Liat 9421235 3895187 31717

cease him 31717

to Poo asset 71717

Increasein scope Deemed in Scope

Hotacaseof separatelease
 I 29 31 it
100000 100000 tooooo tooooo

7M 67
Rou asset 776008
headline To head hid 736008
du
YtenPaifialvabeqnfened 6t.Raynatcl.u
1 736008 44160 100000 680168
2 680168 40810 100000 620978

3 620978 37259 100000 558237

9 558277 32497 100000 491731
5 491711 29504 100000 421235
6 421235

Rou IY Dep q
About 36800915071 368004
kerem sung
61 I 8h 91 lot
100000 100000 100000 100000 100000

267701
61 original note

Decrease in hide 4267301 4212257 153977

U 4 Roo 147201
3680,04 2997
Gain 6723
 Lose him 157974
TO Rou asset 197201
To Gain 114 6733

Revised Leontief 9421235 153934 267301

a Pov 9368004 1472017 2220807

Realmodification
161
150000
I
150000 150000
9
if
391647
I 7

Inc in Liat 4397647 2677017 126346

Rou 126346 tattoo

I Asset
Leaning in

ICA WAY
150000 150000 150000

Ft
100000 100000 100000

H
150000 150000 150000

Ft
 Alternatively as perical Parkway
Revised Lease hid 9421235 1539347 267301
a Pov 9368004 1972017 2220807

150000 150000 150000

Ifill 11116
100000 100000 100000

262471 77
Dec in Liat 9267301 2629717 4870 ICAI 999
a

tease Lido 4870 1cal 490

To peu ugh
Revised lid 4267301 48107 262431W
Raised Rou 9220803 48707 2215937

150000 150000 150000

393617

Inc in aid 9397647 171216

2629317

Poo asset 19117120

141216
To cease of
Revise Liat 392647
Revised Pov 215977717146 347141
Lesson Accounting
7 1 operating real 2 Finance lease

g tosale
1 Operating lease
Blsheet
DonotDemecoquise theAsset Asset 120000 Lesseeaccounting

01 11 21 31
Eq CA of asset 120000 useful life 6gears 6000 50000

Fairydveofasset 125000
Hayy 9
114902 Lessee
hereRentals 929045 Rou asset 114903

Bank 2000
1styay 60000 2ndyr 30000 3004 50000 towanna
116903

LeaseIncentive Omar 2000

0ham If I Die 6000 Added toast
f A of Asset 120000 an Asset 6000
Depreciated every year 91200,007 20000par To Rahu Gooo
2 DeptAnd 126000
Total lease Rentals I 6
60000 41000 50000 2000 138000 21000

I Lease Rentals Pra95 L M 138800 46000

Other andar
Remington
LeaseIncentive Bank 30000
To thank 2000 LeasePatinAdv Reversal 12000
Wto Receivable asset 19000

Mun To Incomedmonheare 46000

Bahn 60000
Body
To Lease Incentivesreversal 2000
To IncomefromLean Pla 46000 Bank 50000
To Lease Reatteceiredinady.frfig 12000 To Income from head 4600
4 fidelity Receivable Reversal how
to
 Statement of Pll
1Styn 21 Body
heal that Income 46000 46000 46000

Balance sheet

c A of asset 120000
Pll have 460044600 138011 adept in Guns 20000pay 4200007
NIL

BART 2000 60000 30000 zoom

Advancefrom Antony 12000 pop 13800

11 72000 good
Receivable m

Mainly god you a nil

Finance lease 4Equivalentto saleof Asset

CA of asset energised
Initial Direct cost
1 ForNonmanufacture Non Dealey Added to Faimilated asset interestmelt implicit
is determined
interest
II D e is changed to plea rateof
note
2 For manufacturer neater lesson
implicit

9909 Investment All lease Rentals VARY

11 not and I
200000 200000 200000 200000
5000099RN
1 9m05s Investment 50000 20000 20000COURY
4200000 x h y
870000
 Modification in operating lease
Blsheet
C A G Alex 120 on

50001 2nd
yr 30000 Md 20000 hmm
a 80000
LeaveRafal 7 star
t Total Reap 50000 thanx 2h00 760000 180000
Rental income every year a 45000
18009

19th
Bank 50000
TO Incomefrom leak 95000
To Advancelease Rat sooo

star powder
Mann 4600
600
To Thame fromHere 45000 Adapt
To Advance fare Raf 1000
Indy and flex Rey deceived 5000 100 600
I Advance

At 2nd yr and modification which increases lease team by burthen 3

years from Indy and Revised lease payment Man 7 28000
Tyr J 92000

Mary 25000
2ndyrand B Y
M hi
28005
q 42000 25000

i Future total meet 28000742000 25000 t 6000 Adu

101000
i perf every 101000
year a
33667g
3you
BMW Banki ISON
Ady carrot reversal 5667
To cease Income 33667
M
palaceofAdu were fat 6000 56677 312g
42000
If Banks
TO head home 33667
To adv leveret 8733
am Balance ofadv leak Rat 9347483337 8666g

B Bank 25000

Adit leaseRat reversed 8667

To head home 33667
of
i Balance Adv teen Rat 48666 86677
Is ng
Finance lease 4Equivalentto saleof Asset
CA of asset energised
Initial Directcost
1 ForNonmanufacture Non Dealey Added to Faimilated asset interestmelt implicit
is determined
2 For manufacturer Dealer lesson II D e is charged to Pll sellingcost

Noy Mtrafoetmly
9906 Investment All lease Rentals Vary
11 not and I
200000 200000 200000 200000
5000099RN
1 9m05s Investment 4200000 x h y 50000 20000 20000WhRN
870000
 net investment Pay of 9m05s investment OR
in the leak All of war
Pay
of all cease payments

1st and not Giono

200000 nooooo nooooo

50000
net Investment
soooo
651956
pulled to pay applying interestare implicit

net Ix in the Gay 121

leave

Fon leave
Lease him Pie of all teaselaymen tease Renta GRY bytesteeonly

Rohlesson
Methvinrelease Palof all leasepayments
y ran
a
hear rentals vary
t anyby lesseeon thirdpony

Implicit rate always Cal from LE54012 POINT OF VIEW

 LESSOR Non Manufacturer Non Dealer Bisheet
PPE 125000
Eq LeaseRentals 50000 yeans
GRU by lessee 18000 X
GRY by third Panty 20000
1h11 9841
Residualvalue 25000 vary 3500 Jono
Fairlane 140000 kind As 1177 21500
CA 125000
InitialDirectcost 7000 Lesson incurred

01 11 and Be
FairValue14000 50000 50000 50000
Food 20000 arv
I die
147000 15000 UGRID

Told Interestrede implicitin thelease

150638
At 101
3638
5635
211
56351 24 A
At 121 145003

sound I t 65359
Netthyinthe hall 147000
125000 3638 4 3638 9
To PPE 3635
22000
toacinondiposy 1.299
i Inflorestate implicit a
11291
FINANCE CEASE Bfsneet
Profit on Disposal 22000 Asset Denecognik 1250007
father Income net inv in the lease Recognise 14700049
LeakReceivable
Met Pain retell IReceivably
Income
In Interest ii Htt Receipt a
147000 1165961111 50000 114596
12825914 7644
WE
113596 50000
76921 U 86271114 50000 35000 Residuum
Manufactured deepen accounting and91157

Initial Direct cost charged 10 PIC Initial Directcost P1 7000

TO Bank 7000
Noconcept of interest rate Implicit

Marketnote of interest to be considered

GAME EXAMPLE

01 11 21 37
1950037145006 50000 soooo
50000
Yay rainyquemunt
I 20000 ARV

isalso2145000mabove 15080144
pinpoint121
Pk soooo Assethamelognised ooo
gang Net Fill in thelease 145000

inlove of manufacturer Dedea lesson

Trading at
Revenue
cost of Goods Sold 125000 145000
Gross Profit Bbig 20000

Blsheet
Retained
Enaning
20000 Inventory 1250007
wetterinthelease 145000

Jong
COGS 125000 Metal in the lease 145000
To inventory gooo TO Revenue 145000
Maufaetener dealer

WitFevenne
COGS 125000 14500
20000
GIP

Trading all
COGS 9125000 106737 114327 Revenue 145000 106737 134327
9109119727 114177 Loon

v Balancesheet

RIE 20000 inventory 114327 10677 1125007

Neptunein thelean 14500
434327 126731

Towing cogs 114327

Netinyinthellae 145000
Metin in release 134327 Y To Inventory 125000
To Revenue 34327 To Revenue 174327

To inventory 10673
111000 7632
100000 7656
Copy 9234
town
I
To Run m
IIIs
 Cogs 92344
metInvintheleere 111000

m
768
yooo
Cogs 92344 756 Methvin teleology
To
invegay
gun tighten
to Everton 7656 To Reen 102343

Imam
NI L 111000
i

Minh 15000 Totally

man
any uh pan nm
TN IL 1500
 LEASE
FINANCE

01 11 21 lot
15 15000
YE
111000
Tod
200000
91860N
Msn Tf
pagan pans 91860 11484 1031490
wood H
927ofFinals
amcondition is Gopisfied

i Finance
long
Thady the
Coas 100000 76567 92394 Revenue 111000
76567 107747

911 yooo
nooomhtnetime in the lead 107344411567 111000
Rto
1000007
Inventory 92344
711
 Toward prem
Coas cons
to inventory gamy werinvincease
9
107
To revenue 103347

To fever 103344
i
HnitIntinthelean
Active in the lean 7656 11186
To Inventory 7656 Pinterest Thome 11186
111000 10.0781

Bank 15000

Twetinvinleen 15000

Bank 15000
11186
Toinfincere
To Netpnv 3814
915000
111867
E9 Manufacturer Dealer
CA 125000
X
Metin in the tall PY of all care payments t vary
1950020
Suppose Pain Value 138000 Yuwen is 138000

telling Profit on loss FainValue on netinxin CA

thelease
Larictevenistowen

128000 125000

130001

Toady ale ignore vary adj

095 125000 Revenue 138000

910 13000 openincome 7000

statement of Plc
Revenue 195000 128000

other income 70000

cols 12500
soon
i f a of Asset tooooo 4 Economic life sylons
Fair value of asset 120000
weald term 3 years
tease Rental 40000

Ugh goooo

01 11 21 and
Finale 157000 Gooood yoooo u gooood
9989947
interestmatetizy

Pivotal lease Rentals 40000XPVIFA4137,3yrs

94946g 4601ofFainYale
i Presentvalue
of all lease payments not substantially equivalent to Faintde
1 This is a case of OPERATING LEASE

146391
Another Eq
If of asset 100000 useful life 6gears
leaseteam 3 years
Rental 60000 GRY Food
Mary 15000
interestrate Implicit 139

Oh est ret at
Kein Kobe 157000 60000 60000 60000
7000 ARV
15000 very
Wrote implicit ist
 i Presentvalue 60100XAN 1311am t 7100 xpun177,347
of all leak payments
146520 9931 of Fin value

i Palof lease payments substantially all of rain value of asset

i This is a case of FINANCE LEASE

Lesson
Leaseof land Invilding
At bentreef inception
Fainvalue ofcord 5000000 9inception

Fair rate ofBulldog 20000004inception

lad case
operating

Buildings Finance seen

Leave rentals every year for 5years 250000

land Building
500000 oooo
250000 sooooo pro7000000
7000000

178571 71429
land Copenatif lease
it if I I I
178571 178571 178571 178571 178571

land No need to Denelopia

Doh 17857178571
Rental Income every year nosy To income
Raildit
ie of 1
Netto in 71429 7194 7149 7199 774M
theatre
Interest note implicit

Net In in the core Dr

To CA of Baldy
To profit loss

Runa ones
land 200000
single lease component
Building 2cg
Here land Amount is immaterial

Entire lease operate

If thildiy classified as operating 9
a n n a Finance T u n Finance

Lesson
Initially at contract inception Classified as Finance lease

Blsheet

NetInv inthe leak XXX

CleeseReceivable
Finnigan
Linda1097
Inc Alcala
I
ignore impaired
Lesson
Initially at contract inception Classified as Finance lease
Blsheet

NetInv inthe leak 350000

CleeseReceivable
Linda1097
Modification which Chores classification from Finance lease to
operating lease
Bleheet Loperating here
NetInv in the leak 350000

Asset 350000

modification which do not claki biotin Further Finale teeny

Belter
Metin in the teen find as 109
Apply fad As 109

a
E

ist ne e I I
É 100009
10000

a 1110000,10000
 8875
Hans Mansur 2950
1933009 687

sean hid 9433009 687 294740 Depth 58880

419757 921659 697 149385 235
1
3097785
Raymer 1000014707 7000007 Bn Foon
2793785
3511 88765
Exch Cold
2482551
Sub lease
Tagati led leased a Building ton 5years to king ad After a years

king ud sublease Building to Queen etd Don Byars

Lease Rentals payable needthese 150000Pa
by king a

tease u in a Queen sublease 130000

Discount mate cop
Moons
of king ud Head lessee

01 11 21 39 I 51
150000 150000 150000 150000 150000
568618
lot
Tagatillesson king Head lessee

Blsheet Laing
leasetide 568618 Boo asset 568618
NutEXP 107 56862 41StynDep 1137237
E Payment 1500007 A 2adyn Dep C1137237
475480 Roofadynard 341172
my hyp 107 47548
e Payment 1500007

seenhirffodanted 373028
Attend years Sub leak to Queen ad
King Intermediate lesson Dineen sublessee
He
In Case of sub lease to Queen king ad Should assess whemen it is
classified as Financing on operating lease
feconomic life 19ns
Main leak 7 Remaining leak team 3 years
hub lease I leased bon entire 3 years i majorpart of
FINANCE LEASE Economic life
Eg Kingdiffered an asset for 8month

If he wishes to Gab I be an altar then as an intermediate lesson

the should classify they guy care of operating lease

E9 king and leased laptoplowedu from lesson

If he wishes to sub lease this asset he cannot claim

low value exemption

 01 11 21 BE
170000 130000 130000
323290
lot
BISheet
PlL 391172 3232907 17882 Bounsset 341172
Degecoquise 3411727
all
Leasehide fadynard 373028
At lot Eep 37303 nettnvestment in
Payment 1500007 the leaselady end 323290

It
260731 4 Mr 107 Thame 3234
at coil 26037 c Receipt 1300007

a Payment 1500007 225619

196969 IN v1 22562

at 13636 1 Receipts 1300007

Rayna 1500007 118181
NIL 419nF eat 11818
Receipt 1300007

All

statement of Pk
31 I 51
InterestIncome Metin 32329 22562 11818

Interest Expenses headline 373037 260337 136367

In case sub lease is classified as operating seek continue to

Recognise the Bouquet and lease Rentals receivable on sub lease recognised
as Rental income over the lease team sublease on straight line rests
 BCS

leaseable 373028 Rou Asset 3411720

He

Buttestoon impairment as per

Ild As 36
pentagrams
Modification

Coxidammendments Hastate77014204 lastDate3010612022

anyancessee
111 M 211m 393m 13m
Practical Eypeditd 50000 50000 50000 50000
185854
4 Discount rate quarterly 37093mm

Roo asset 185854

To lease in 185854

Blsheet
tall lick 185854 Boo 185854
Interest 41 5575 Dep Quarterly 114 464637

E Payment 500007 Roofestgarded 139311

Leneciablistgarded 191429
w
Mand modification but not due to covid Notapplied Precticefappedient

esta andy add and

50000 50000 50000
20000
lili
Assumed Revised
Discount BY
i Lease tide deepened by 4191429 1111887 30241

Revised Icaria 4191929 30241 111188

Revised Round 4179391 30241 109150
 Hate hit
I r
Intend payment d due
111188 3335 114523
114523 3475 500007 67958
67958 700007 ME
203821rad

2 Suppose Istgard modification due to Covid AApply Practical Gradient

into sides add and

50000 50000 50000
modification dueto avid
20000
If
70000
Can apply Poetical Expedient electing to change
Rou leak liability
Bashed
PIL 30000 Boo 341172

Lease lick 141429 141429 Bank 0124 50000 3rd

Ct79menest 3Y.on 141429 4243 4243 700001hm

Payment 50000 1300007 waiver
credited torn of'd
95672 115672
Leanhim soooo
Interest 37.0795672 2870 2870
50000 Till 3000
G Payment soon
48542 68542
1458 1458
Interest 37 an 48542
50000 Goooo
Haney
NIL NIL
lol of Hall hid
yeah Ill Interest Payment U
I 9243 500007 95672
191429
I 95672 2870 1500001 48542
3 48542 1458 50000 NIC